Advisory thresholds and alerts for managing position concentration risk

ABSTRACT

Management of a position concentration risk of an account includes the establishment of a threshold level for an aggregate trader position. The aggregate trader position may be associated with one or more customer accounts that are managed by one or more clearing firms. An actual parameter value associated with each of the customer accounts is aggregated to determine an aggregate parameter value, which is compared against the established threshold value. If, based on the comparison between the aggregate parameter value and the established threshold value, it is determined that the aggregate parameter value meets or exceeds the established threshold value, an advisory alert is generated, which may be automatic. The advisory alert is then communicated or otherwise provided to one or more authorized entities.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims priority to U.S. Provisional Patent ApplicationNo. 61/048,989, entitled “Clearing Member Large Position Alert System,”filed on Apr. 30, 2008, the contents of which are incorporated herein inits entirety.

FIELD OF THE INVENTION

The disclosure is generally related to managing position concentrationrisk and to establishing thresholds and generating alerts related tolevels of position concentration risk.

BACKGROUND

Clearing firms supervise the risk of accounts of which they manage,administer, and otherwise oversee, but the clearing firms may be unawareof the overall concentration risk of the total account position for oneor more of their account customers. Position concentration risk of anaccount that clears multiple clearing firms may pose problems anduncertainties for one or more of the clearing firms individually becauseeach clearing firm lacks information related to the aggregate risk ofthe account across the multiple clearing firms. An advisory alert orindication to advise of or provide an update related to the overallconcentration risk of each total account position is thus desired byclearing firms and/or other entities. A further desirable aspectincludes providing clearing firms, account customers, and/or otherauthorized entities with the ability and flexibility to requestinformation and updates related to the overall concentration risk ofeach total account position based upon established parameters.

SUMMARY

A method of managing a position concentration risk of an accountincludes the establishment of a threshold level for an aggregate traderposition. The aggregate trader position may be associated with one ormore customer accounts that are managed by one or more clearing firms.An actual parameter value associated with each of the customer accountsis aggregated to determine an aggregate parameter value, which iscompared against the established threshold value. If, based on thecomparison between the aggregate parameter value and the establishedthreshold value, it is determined that the aggregate parameter valuemeets or exceeds the established threshold value, an advisory alert isautomatically generated. The advisory alert is then communicated orotherwise provided to one or more authorized entities.

A system of managing a position concentration risk of an accountincludes a server, on which a position concentration risk softwareapplication is stored. One or more user third party terminals arecoupled to the server for access thereto. Various modules comprise theposition concentration risk software application and includecomputer-readable instructions for performing the operations. Theinstructions are stored by a memory component and executed by aprocessor.

In another aspect, a method of managing a position concentration risk ofan account includes establishing a threshold level for a traderposition, where the trader position is associated with a customeraccount and includes one or more contracts for the purchase or sale of acommodity. The method further includes comparing an actual parametervalue associated with the trader position against the threshold leveland automatically generating an advisory alert if it is determined thatthe actual parameter value meets or exceeds the threshold level. Theadvisory alert is communicated to an authorized entity.

In yet another aspect, a method of managing a position concentrationrisk of an account includes establishing a threshold level for a traderposition that is associated with a customer account. The trader positionincludes one or more contracts for the purchase or sale of a commodity.An actual parameter value associated with the trader position isdetermined and an actual parameter value associated with the traderposition is compared against the threshold level. The method includesdetermining, based on the comparing step, whether to impose one or moreintervening measures to regulate transactions that impact the traderposition's actual parameter value.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing summary and the following detailed description are betterunderstood when read in conjunction with the appended drawings.Exemplary embodiments are shown in the drawings, however, it isunderstood that the embodiments are not limited to the specific methodsand instrumentalities depicted herein. In the drawings:

FIG. 1 is a flowchart illustrating a method of managing a positionconcentration risk of an account according to an exemplary embodiment.

FIG. 2 is a block diagram illustrating a system for managing a positionconcentration risk of an account according to an exemplary embodiment.

FIG. 3 is a flowchart illustrating a method of managing a positionconcentration risk of an account according to an additional exemplaryembodiment.

FIG. 4 is a flowchart illustrating a method of managing a positionconcentration risk of an account according to yet another exemplaryembodiment.

DETAILED DESCRIPTION

A clearing firm may manage, administer, and otherwise oversee theaccounts of its traders, e.g., account customers of the clearing firm,and may also track traders with reportable positions. A reportableposition may be defined as the number or overall value of contracts heldby a trader. A large-trader may be defined as a trader that haspositions that exceed a threshold of a reportable limit. Hence, traderswith large positions are known as large-traders.

A large-trader account may be defined as an account that incorporateseach of the multiple clearing accounts used by a large-trader fortrading, such as accounts for various exchanges, products, assetclasses, and the like. Rather than reporting each individual account ofa large-trader, a large-trader account collectively tracks and managesall positions of the large-trader.

A large position alert system and method may manage a positionconcentration risk of an account and may be utilized to establishthresholds, such as open interest thresholds, by contract for alarge-trader account. Upon the establishment of the thresholds,large-trader data may be utilized to determine if the open interestthreshold has been exceeded. If the threshold is exceeded, a message,i.e. an advisory alert, may be generated to inform the clearing firmcustomer and/or any other authorized entity.

With reference to FIG. 1, a method 100 of managing a positionconcentration risk of an account, according to an exemplary embodiment,is illustrated.

At 110, a threshold level for an aggregate trader position isestablished. The aggregate trader position may be associated with one ormore customer accounts that may be managed by one or more clearingfirms.

In an embodiment, the aggregate trader position may comprise two or morecontracts having correlated risk profiles, in which case the contractshaving the correlated risk profiles may be associated with the aggregatetrader position. In another embodiment, the aggregate trader positionmay comprise two or more contracts having opposed risk profiles, inwhich case the contracts having the opposed risk profiles may beassociated with the aggregate trader position. In yet anotherembodiment, the aggregate trader position may include a combination oflong and short contracts associated with a particular commodity. Thetrader position and contracts are not limited to financial instruments,such as futures, options on futures, and the like, but rather may alsoinclude cleared, physically delivered commodities, such asover-the-counter (OTC) and various asset class positions, for example.

At 110, each of the one or more clearing firms may establish one or morethreshold levels particular to it. For example, the aggregate traderposition may be associated with a first account managed by a firstclearing firm and a second account managed by a second clearing firm. Inthis situation, the first clearing firm may desire, and accordinglyestablish, a particular threshold level relative to the aggregate traderposition, while the second clearing firm desires and accordinglyestablishes a different threshold level.

The method 100 is not limited to clearing firms as the only entitycapable of establishing a threshold level for an aggregate traderposition. According to an embodiment, an owner of the aggregate traderposition may establish the threshold level for the position as, forexample, a range of a predetermined level. Other entities andindividuals may also establish the threshold level. Moreover, theestablishing, as well as modifying or canceling, of the threshold levelmay be implemented remotely via an Internet accessible interface. Uponany modifications or canceling of the threshold level, a notificationmay be sent to any authorized entities, such as the one or more clearingfirms or the owner of the aggregate trader position.

Each threshold level may be a percentage of a predetermined value, apercentage of a particular clearing firm's obligations, a combinationthereof or any other desirable parameter. For example, the thresholdlevel may be a percentage of a speculative position limit, a percentageof a hedge position limit, or an accountability level. Additionally, thethreshold level may be valid for one processing cycle, after which a newthreshold level is established.

The threshold level may be established at a value that renders theaggregate trader position reportable to regulatory authorities ifexceeded. In an embodiment, the advisory alert may be generated prior torendering the aggregate trader position reportable.

In an embodiment, when a threshold level is established, an indicationis communicated to an owner of the aggregate trader position to informthe owner of the threshold level. The owner may either accept or rejectthe established threshold level and may communication either theacceptance or rejection, which may be further communicated to anauthorized entity. The threshold level may be activated if accepted bythe owner of the aggregate trader position. For example, if a clearingfirm establishes a threshold level, an indication of such iscommunicated to the owner. In turn, the owner's acceptance or rejectionis communicated to the clearing firm that established the thresholdlevel, as well as to any other entities as authorized by, for example,the clearing firm or the owner.

According to an additional embodiment, an owner of the aggregate traderposition and/or one or more clearing firms may be notified if the ownerno longer has a trader position at a particular clearing firm. Forexample, if a clearing firm, at 110 of the method 100, establishes athreshold level for an aggregate trader position, that particularclearing firm, as well as the owner of the aggregate trader position,may be notified if the owner is no longer utilizing that particularclearing firm. In such a situation, the particular clearing firm may notbe eligible to set a threshold level for that aggregate trader position.Accordingly, the particular clearing firm may be excluded from receivingcommunications related to the aggregate trader position.

Returning to the flowchart of FIG. 1, at 120, actual parameter valuesthat are associated with each of the customer accounts of the aggregatetrader position are compiled and aggregated to determine an aggregateparameter value. The aggregate parameter value may include, for example,a total number of contracts of the aggregate trader position, a netvalue of the contracts, a risk value associated with the contracts, acombination thereof and/or any other desirable parameter.

At 130, the aggregate parameter value associated with the aggregatetrader position, as determined at 120, is compared to the thresholdlevel established at 110. The comparing step 130 may occur periodically,continually, on-demand, following a predefined event, randomly, at leastonce daily, or a combination thereof. In an embodiment, the comparingstep 130 occurs once daily after processing all contracts associatedwith the aggregate trade position.

At 140, a determination is made as to whether the aggregate parametervalue exceeds or meets the threshold level based on the comparing stepat 130. If the aggregate parameter value neither meets nor exceeds thethreshold level, the comparison and determination operations maycontinue to be performed, at 130 and 140, continuously, for apredetermined number of times, or after a predetermined period of timehas elapsed.

At 150, if, based on the comparing step at 140, it is determined thatthe aggregate parameter value either meets or exceeds the thresholdlevel, an advisory alert is automatically generated. The advisory alertmay include, for example, predetermined account details relating to theone or more customer accounts of the aggregate trader position. In anembodiment, the advisory alert may be anonymous insofar as it does notreveal the identify of a clearing firm or other authorized entityassociated with the aggregate trader position.

At 160, the generated advisory alert is communicated to an authorizedentity. The authorized entity be one or more of the clearing firms, aregulatory entity, a third party, an owner of the aggregate traderposition, or a combination thereof. The advisory alert may be in theform of an email message, a text message, an instant message, or anotherform of communication.

According to an embodiment, the aggregate trader position may be alarge-trader position that includes a plurality of contracts across aplurality of customer accounts. The customer accounts may be managed bya plurality of clearing firms. In this embodiment, each of the customeraccounts and related positions may be associated with a singlelarge-trader account. The communication of the advisory alert isaccordingly communicated in connection with the large-trader account.Moreover, each of the clearing firms may be authorized to anonymouslycommunicate or otherwise obtain notices and/or information relating tothe large-trader position to and from one another. This authorizationmay be in the form of a contractual agreement, for example, entered intoby one or more clearing firms and an owner of the large-trader position.

According to another exemplary embodiment of managing a positionconcentration risk of an account, two or more threshold levelsassociated with the aggregate trader position may be established. Forexample, one clearing firm may desire alerts of the aggregate traderposition related to two or more thresholds. Upon the establishment ofthe multiple threshold levels, the aggregate parameter value is comparedto each of the multiple threshold levels.

Another aspect allows for a determination of whether to impose one ormore intervening measures to regulate transactions that impact theactual parameter value associated with each of the customer accounts ofthe aggregate trader position. For example, if it is determined that theaggregate parameter value meets, exceeds, or is within a predeterminedrange of at least one of the threshold levels, then one or moreintervening measures may be imposed. Examples of intervening measuresmay include disabling or limiting certain trade registration accessassociated with the trader position, disabling or limiting access to atrading system, disabling or limiting access to a clearing system,freezing one or more customer accounts, and the like.

In addition to or instead of an advisory alert, an approaching alertfunction may also be implemented based on the result of the comparingstep 130. If it is determined, based on the comparing step 130, that theaggregate parameter value is within a predetermined range of thethreshold level, an approaching alert may be generated and communicatedto one or more authorized entities. This may serve as a usefulindication that the aggregate parameter value is close to the thresholdlevel. The entity that establishes the threshold level may alsoestablish the predetermined range for generating and receiving anapproaching alert.

An exemplary system 200 for managing a position concentration risk of anaccount may include components for performing some or all portions ofthe above-described method 100. With reference to FIG. 2, the componentsmay include, for example, a server 210 on which a position concentrationrisk software application 220 is stored. The system 200 may furtherinclude one or more user third party terminals 230 that are coupled tothe server 210. The terminals 230 may be coupled to the server 210through a wired or wireless network, such as, for example, the Internet.

Each third party terminal 230 may include, according to an embodiment, adata interface 235 for accessing the server 210 and the softwareapplication 220 stored on the server 210. Shown in FIG. 2 are four thirdparty terminals 230, including two clearing firms 230 a and 230 b andtwo traders 230 c and 230 d, respectively including a data interface 235a, 235 b, 235 c, and 235 d. However, the system 200 is not limited tothis arrangement, and more or fewer servers 210 and/or third partyterminals 230 may be incorporated within the system 200. Moreover, thethird party terminals 230 are not limited to clearing firms and traders,but may also include other users and entities. The third party terminals230 may communicate with one another directly via a network, forexample, or through the server 210.

The software application 220 may provide users with the functionality tomanage a position concentration risk that is associated with one or morecustomer accounts. The software application 220 may include, but is notlimited to, a threshold level module 221, an aggregator 222, a comparer223, an advisory alert generator 224, and/or a communication module 225.

When the software application 220 is executed and accessed via the oneor more third party terminals 230, the threshold level module 221enables users of the third party terminals 230 to establish one or morethreshold levels for an aggregate trader position. The aggregate traderposition may be associated with the one or more customer accounts thatare managed by one or more clearing firms, such as the clearing firms230 a and 230 b.

The aggregator 222 operates to aggregate an actual parameter value;associated with each of the customer accounts to determine an aggregateparameter value. The comparer 223 may operate to compare the aggregateparameter value with the threshold level.

If, based on the comparing step by the comparer 223, it is determinedthat the aggregate parameter value meets or exceeds the threshold level,the advisory alert generator 224 may create an advisory alert.

The advisory alert may be communicated to an authorized entity by thecommunication module 225.

It is noted that the various components described herein with respect tothe system 200 may include one or more computing devices, hand-heldcommunication devices, mobile computers and/or any other electroniccommunication means. The components may be described in the generalcontext of comprising computer-executable instructions, such as programmodules, being executed by a computer. Generally, program modules mayinclude routines, programs, objects, components, data structures, or thelike that perform particular tasks or implement particular abstract datatypes.

With reference to FIG. 3, a method 300 of managing a positionconcentration risk of an account, according to an exemplary additionalembodiment, is illustrated.

At 310, a threshold level for a trader position associated with acustomer account is established. The trader position includes one ormore contracts for the purchase or sale of a commodity.

According to an embodiment, the trader position may be a combination oflong and short contracts associated with a particular commodity, forexample. The contracts may have correlated risk profiles, in which casethe contracts with the correlated risk profiles are associated with thetrader position. The contracts may have opposed risk profiles, in whichcase the contracts having the opposed risk profiles are associated withthe trader position.

The threshold level may be a percentage of a speculative position limit,or the threshold level may be a percentage of a hedge position limit.The threshold level may be established at a value that renders thetrader position reportable to a regulatory authority if exceeded. Thethreshold level may be established at a value that triggers an advisoryalert prior to rendering the trader position reportable.

At 320, an actual parameter value that is associated with the traderposition is compared with the threshold level that is established at310. The actual parameter value may include a total number of thecontracts of the trader position, a net value of the contracts, a riskvalue associated with the contracts, a combination thereof and/or anyother desirable parameter.

At 330, a determination is made based on the preceding comparison (320)as to whether the actual parameter value meets or exceeds the thresholdlevel.

At 340, an advisory alert is automatically generated if, based on thepreceding comparison and determination steps, it is determined that theactual parameter value meets or exceeds the threshold level. Accordingto an embodiment, an advisory alert may be generated if, based on thepreceding comparison, it is determined that the actual parameter valueis within a predetermined range of the threshold level.

At 350, after the generation of the advisory alert, the advisory alertis communicated to one or more authorized entities. An authorized entitymay be a clearing firm, a regulatory entity, a third party, and an ownerof the trader position. The advisory alert may comprise predeterminedaccount details relating to the customer account, for example. Otherdetails and/or information may also be included in the advisory alert.Moreover, the advisory alert may be anonymous. The advisory alert may becommunicated via electronic-mail means or other communication forms,such as a text or instant message.

The establishing of the threshold level, as well as later modifying orcanceling the threshold level, may be performed remotely by a user of athird party terminal, for example, via an Internet accessible interface.Upon any modifications or canceling of the threshold level, anotification may be sent to any authorized entities, such as the one ormore clearing firms or the owner of the trader position.

With reference to FIG. 4, a method 400 of managing a positionconcentration risk of an account, according to yet another exemplaryembodiment, is illustrated.

At 410, the method 400 includes establishing a threshold level for atrader position associated with a customer account, where the traderposition comprises one or more contracts for the purchase or sale of acommodity.

According to an embodiment, the trader position may be a combination oflong and short contracts associated with a particular commodity, forexample. The contracts may have correlated risk profiles, in which casethe contracts with the correlated risk profiles are associated with thetrader position. The contracts may have opposed risk profiles, in whichcase the contracts having the opposed risk profiles are associated withthe trader position.

The threshold level may be a percentage of a speculative position limit,or the threshold level may be a percentage of a hedge position limit.The threshold level may be established at a value that renders thetrader position reportable if exceeded. The threshold level may beestablished at a value that triggers an advisory alert prior torendering the trader position reportable.

At 420, an actual parameter value associated with the trader position isdetermined. At 430, a comparison operation is performed in which theactual parameter value associated with the trader position is comparedagainst the threshold level. The comparing operation 430 may occurperiodically, continually, on-demand, following a predefined event,randomly, at least once daily, and/or daily after processing of allcontracts associated with the trader position.

At 440, a determination is made based on the preceding comparison step430 as to whether the actual parameter value meets or exceeds theestablished threshold level. If the actual parameter value neither meetsnor exceeds the threshold level, the comparison and determinationoperations may continue to be performed, at 430 and 440, continuously,for a predetermined number of times, or after a predetermined period oftime has elapsed.

At 450, one or more intervening measures to regulate transactions thatimpact the trader position's actual parameter value are imposed if it isdetermined (at 440) that the actual parameter value meets or exceeds thethreshold value.

The determination of whether to impose one or more intervening measuresmay include several factors, such as determining if the actual parameteris within a predetermined range of the threshold level, if the actualparameter is equivalent to the threshold level, and if the actualparameter exceeds the threshold level.

An example of an intervening measure includes generating an advisoryalert that serves to notify an authorized entity. An authorized entitymay include a clearing firm, a regulatory entity, a third party, anowner of the trader position, and any combination thereof.

Other intervening measures may include disabling or limiting certaintrade registration access associated with the trader position, disablingor limiting access to a trading system, disabling or limiting access toa clearing system, freezing one or more customer accounts, and the like.If an intervening measure is or will be imposed, a communication may besent via an Internet accessible interface to one or more authorizedentities.

In an embodiment, the trader position may be a large-trader positionthat includes a plurality of contracts across one or more customeraccounts that are managed by one or more clearing firms. Each of thecustomer accounts and related positions may be associated with a singlelarge-trader account. The threshold levels may thus be established forthe large-trader position.

Each of the clearing firms associated with the large-trader position maybe authorized to obtain information relating to the large-traderposition from one another. An authorization process may include enteringinto an agreement between the one or more clearing firms and the ownerof the large-trader position. If the owner no longer has atrader-position at a particular clearing firm, an automatic notificationmay be generated and sent to the owner and the one or more clearingfirms.

The foregoing examples are provided merely for the purpose ofexplanation and are in no way to be construed as limiting. Whilereference to various embodiments are shown, the words used herein arewords of description and illustration, rather than words of limitation.Further, although reference to particular means, materials, andembodiments are shown, there is no limitation to the particularsdisclosed herein. Rather, the embodiments extend to all functionallyequivalent structures, methods, and uses, such as are within the scopeof the appended claims.

1. A method of managing a position concentration risk of an account,comprising: providing at least one computing device comprising a memoryfor storing instructions and a processor for executing saidinstructions, and utilizing said at least one computing device toperform the steps of: establishing a threshold level for an aggregatetrader position that is associated with one or more customer accounts,said customer accounts being managed by one or more clearing firms;aggregating an actual parameter value associated with each of saidcustomer accounts to determine an aggregate parameter value; comparingthe aggregate parameter value with the threshold level; automaticallygenerating an advisory alert if, based on the comparing step, it isdetermined that the aggregate parameter value has met or exceeded thethreshold level; and communicating the advisory alert to an authorizedentity.
 2. The method of claim 1, wherein each of the one or moreclearing firms establishes a threshold level particular to it, themethod further comprising comparing the aggregate parameter value witheach of said threshold levels and generating the advisory alert if atleast one of said threshold levels has been met or exceeded.
 3. Themethod of claim 2, wherein each threshold level comprises at least oneof a percentage of a predetermined value and a percentage of particularclearing firm's outstanding obligations.
 4. The method of claim 1,wherein the aggregate trader position is a large-trader positioncomprising a plurality of contracts across a plurality of customeraccounts, said customer accounts being managed by a plurality ofclearing firms, the method further comprising: associating each of saidcustomer accounts and related positions with a single large-traderaccount; and communicating the advisory alert in connection with thelarge-trader account.
 5. The method of claim 4, further comprisingauthorizing each of said clearing firms to anonymously communicatenotices and information relating to said large-trader position to andfrom one another.
 6. The method of claim 5, wherein said authorizingstep comprises entering into a contractual agreement between one or moreclearing firms and an owner of said large-trader position.
 7. The methodof claim 1, wherein the comparing step occurs at least one ofperiodically, continually, on-demand, following a predefined event,randomly, and at least once daily.
 8. The method of claim 1, wherein thecomparing step occurs at least once daily after processing all contractsassociated with the aggregate trader position.
 9. The method of claim 1,further comprising: automatically notifying at least one of an owner ofthe aggregate trader position and at least one clearing firm if theowner no longer has a trader position at a particular clearing firm; andexcluding the particular clearing firm from receiving any futureadvisory communications relating to the aggregate trader position. 10.The method of claim 1, further comprising: communicating to an owner ofthe aggregate trader position the established threshold level; receivingan acceptance or rejection of the established threshold level by theowner; communicating the acceptance or rejection to one more authorizedentities; and activating the established threshold level if accepted bythe owner.
 11. The method of claim 1, further comprising: automaticallygenerating an approaching alert if, based on the comparing step, it isdetermined that the aggregate parameter value is within a predeterminedrange of the threshold level; and communicating the approaching alert toone or more authorized entities.
 12. The method of claim 1, wherein thethreshold level is valid for at least one processing cycle, the methodfurther comprising establishing a threshold level after each processingcycle.
 13. The method of claim 1, wherein an owner of the aggregatetrader position establishes the threshold level as a range of apredetermined level.
 14. The method of claim 1, wherein the aggregatetrader position comprises two or more contracts having correlated riskprofiles, the method further comprising associating the contracts havingsaid correlated risk profiles with the aggregate trader position. 15.The method of claim 1, wherein the aggregate trader position comprisestwo or more contracts having opposed risk profiles, the method furthercomprising associating the contracts having said opposed risk profileswith the aggregate trader position.
 16. The method of claim 1, whereinthe threshold level is a percentage of a speculative position limit. 17.The method of claim 1, wherein the threshold level is a percentage of ahedge position limit.
 18. The method of claim 1, wherein the aggregateparameter value comprises at least one of a total number of contracts ofthe aggregate trader position, a net value of the contracts, and a riskvalue associated with the contracts.
 19. The method of claim 1, whereinthe authorized entity comprises at least one of (i) one or more of theclearing firms; (ii) a regulatory entity; (iii) a third party; (iv) oneor more clearing houses; and (v) an owner of the aggregate traderposition.
 20. The method of claim 1, wherein the threshold level isestablished at a value that renders the aggregate trader positionreportable if exceeded.
 21. The method of claim 1, wherein the thresholdlevel is established at a value that triggers the advisory alert priorto rendering the aggregate trader position reportable.
 22. The method ofclaim 1, wherein the aggregate trader position comprises a combinationof long and short contracts associated with a particular commodity. 23.The method of claim 1, further comprising establishing, modifying, orcanceling said threshold level remotely via an Internet accessibleinterface.
 24. The method of claim 1, further comprising: establishingtwo or more threshold levels associated with the aggregate traderposition; comparing the aggregate parameter value with each of saidthreshold levels; determining, after each comparing step, whether toimpose one or more intervening measures to regulate transactions thatimpact the actual parameter value associated with each of said customeraccounts.
 25. The method of claim 24, further comprising imposing one ormore intervening measures if it is determined that the aggregateparameter value has met, exceeded, or is within a predetermined range ofat least one of the threshold levels.
 26. The method of claim 1, whereinthe advisory alert comprises predetermined account details relating tothe one or more customer accounts.
 27. The method of claim 1, whereinthe advisory alert is anonymous insofar as it does not reveal theidentity of the clearing firms associated with the aggregate traderposition.
 28. A system for managing a position concentration risk of anaccount, comprising: a position concentration risk software applicationstored on a server, said software application providing users withfunctionality to manage a position concentration risk associated withone or more customer accounts; and one or more user third partyterminals coupled to the server, said third party terminals comprising adata interface for accessing the server and the position concentrationrisk software application stored thereon, wherein the positionconcentration risk software application, when executed and accessed viathe one or more third party terminals, enables users to: establish athreshold level for an aggregate trader position that is associated withthe one or more customer accounts, said customer accounts being managedby one or more clearing firms; aggregate an actual parameter valueassociated with each of said customer accounts to determine an aggregateparameter value; compare the aggregate parameter value with thethreshold level; automatically generate an advisory alert if, based onthe comparing step, it is determined that the aggregate parameter valuehas met or exceeded the threshold level; and communicate the advisoryalert to an authorized entity.
 29. The system of claim 28, wherein theaggregate trader position is a large-trader position comprising aplurality of contracts across a plurality of customer accounts, saidcustomer accounts being managed by a plurality of clearing firms,wherein the position concentration risk software application furtherenables users to: associate each of said customer accounts and relatedpositions with a single large-trader account; communicate the advisoryalert in connection with the large-trader account; and authorize each ofsaid clearing firms to communicate notices and information relating tosaid large-trader position to and from one another.
 30. The system ofclaim 28, wherein the compare operation occurs at least one ofperiodically, continually, on-demand, following a predefined event, atleast once daily, and randomly.
 31. The system of claim 28, wherein thecompare operation occurs at least once daily after processing allcontracts associated with the aggregate trader position.
 32. The systemof claim 28, wherein the position concentration risk softwareapplication further enables users to: communicate to an owner of theaggregate trader position the established threshold level; receive anacceptance or rejection of the established threshold level by the owner;communicate the acceptance or rejection to one or more authorizedentities; and activate the established threshold level if accepted bythe owner.
 33. The system of claim 28, wherein the positionconcentration risk software application further enables users to:automatically generate an approaching alert if, based on the compareoperation, it is determined that the aggregate parameter value is withina predetermined range of the threshold level; and communicate theapproaching alert to one or more authorized entities.
 34. The system ofclaim 28, wherein the authorized entity comprises at least one of (i)one or more of the clearing firms; (ii) a regulatory entity; (iii) athird party; (iv) one or more clearing houses; and (v) an owner of theaggregate trader position.
 35. The system of claim 28, wherein thethreshold level is established at a value that renders the aggregatetrader position reportable if exceeded.
 36. The system of claim 28,wherein the position concentration risk software application furtherenables users to establish, modify, or cancel said threshold levelremotely via an Internet accessible interface.
 37. The system of claim28, wherein the position concentration risk software application furtherenables users to: establish two or more threshold levels associated withthe aggregate trader position; compare the aggregate parameter valuewith each of said threshold levels; determine, after each comparingstep, whether to impose one or more intervening measures to regulatetransactions that impact the actual parameter value associated with eachof said customer accounts.
 38. The system of claim 37, wherein theposition concentration risk software application further enables usersto impose one or more intervening measures if it is determined that theaggregate parameter value has met, exceeded, or is within apredetermined range of at least one of the threshold levels.
 39. Amethod of managing a position concentration risk of an account,comprising: providing at least one computing device comprising a memoryfor storing instructions and a processor for executing saidinstructions, and utilizing said at least one computing device toperform the steps of: establishing a threshold level for a traderposition associated with a customer account, said trader positioncomprising one or more contracts for the purchase or sale of acommodity; comparing an actual parameter value associated with saidtrader position against the threshold level; automatically generating anadvisory alert if, based on the comparing step, it is determined thatthe actual parameter value has met or exceeded the threshold level; andcommunicating the advisory alert to an authorized entity.
 40. The methodof claim 39, further comprising automatically generating an advisoryalert if, based on the comparing step, it is determined that the actualparameter value is within a predetermined range of the threshold level.41. The method of claim 39, wherein the parameter value comprises atleast one of a total number of the contracts, a net value of thecontracts, and a risk value associated with the contracts.
 42. Themethod of claim 39, wherein the authorized entity comprises one or moreof the group consisting of a clearing firm, a regulatory entity, a thirdparty, and an owner of the trader position.
 43. The method of claim 39,wherein the threshold level is established at a value that renders thetrader position reportable if exceeded.
 44. The method of claim 39,wherein the threshold level is established at a value that triggers theadvisory alert prior to rendering the trader position reportable. 45.The method of claim 39, wherein the trader position comprises acombination of long and short contracts associated with a particularcommodity.
 46. The method of claim 39, further comprising establishing,modifying, or canceling said threshold level remotely via an Internetaccessible interface.
 47. The method of claim 46, wherein establishing,modifying, or canceling the threshold level comprises: determining athreshold value for one or more positions and associating the thresholdvalue with the customer account; notifying the owner of said thresholdvalue and requesting the owner's confirmation; the owner confirmingacceptance of the threshold value; notifying one or more authorizedentities responsible for managing said customer account of the thresholdvalue and of the owner's acceptance thereof; and activating saidthreshold level based on the accepted threshold value.
 48. The method ofclaim 47, further comprising automatically notifying at least one ofsaid owner and said clearing firms of any modifications to the thresholdlevel.
 49. The method of claim 39, further comprising communicating theadvisory alert via electronic-mail means.
 50. The method of claim 39,further comprising: establishing two or more threshold levels associatedwith the trader position; and automatically generating and communicatingan advisory alert after each threshold level is met or exceeded.
 51. Themethod of claim 50, further comprising automatically generating andcommunicating an advisory alert if, based on the comparing step, it isdetermined that the actual parameter value is within a predeterminedrange of either of said threshold levels.
 52. The method of claim 39,wherein two or more of the contracts have correlated risk profiles, themethod further comprising associating the contracts having saidcorrelated risk profiles with the trader position.
 53. The method ofclaim 39, wherein two or more of the contracts have opposed riskprofiles, the method further comprising associating the contracts havingsaid opposed risk profiles with the trader position.
 54. The method ofclaim 39, wherein the advisory alert comprises predetermined accountdetails relating to the customer account.
 55. The method of claim 54,wherein the advisory alert is anonymous insofar as it does not revealthe identity of any clearing firm associated with the customer account.56. The method of claim 39, wherein the threshold level is a percentageof at least one of a speculative position limit and an accountabilitylevel.
 57. The method of claim 39, wherein the threshold level is apercentage of at least one of a hedge position limit and anaccountability level.
 58. The method of claim 39, further comprising:establishing two or more threshold levels associated with the traderposition; comparing the actual parameter value associated with saidtrader position against each of said threshold levels; determining,after each comparing step, whether to impose one or more interveningmeasures to regulate transactions that impact the trader position'sactual parameter value.
 59. The method of claim 58, further comprisingimposing one or more intervening measures if it is determined that theactual parameter value has met, exceeded, or is within a predeterminedrange of at least one of the threshold levels.
 60. A method of managinga position concentration risk of an account, comprising: providing atleast one computing device comprising a memory for storing instructionsand a processor for executing said instructions, and utilizing said atleast one computing device to perform the steps of: establishing athreshold level for a trader position associated with a customeraccount, said trader position comprising one or more contracts for thepurchase or sale of a commodity; determining an actual parameter valueassociated with the trader position; comparing an actual parameter valueassociated with said trader position against the threshold level;determining, based on the comparing step, whether to impose one or moreintervening measures to regulate transactions that impact the traderposition's actual parameter value.
 61. The method of claim 60, whereindetermining whether to impose one or more intervening measures comprisesat least one of: determining if the actual parameter is within apredetermined range of the threshold level; determining if the actualparameter level has met the threshold level; and determining if theactual parameter has exceeded the threshold level.
 62. The method ofclaim 61, wherein the intervening measures comprise at least one of:generating an advisory alert notifying an authorized entity; disablingcertain trade registration access associated with the trader position;disabling access to a trading system; and disabling access to a clearingsystem;
 63. The method of claim 60, wherein the parameter valuecomprises at least one of a total number of the contracts, a net valueof the contracts, and a risk value associated with the contracts. 64.The method of claim 60, wherein the authorized entity comprises one ormore of the group consisting of a clearing firm, a regulatory entity, athird party, and an owner of the trader position.
 65. The method ofclaim 60, further comprising communicating imposing said one or moreintervening measures remotely via an Internet accessible interface.